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ment may be seriously shortened. This system will show the effects of over-loading, will prove conclusively that careful loading is the most economical in the end, and will show where truck-time is lost. Measures can then be taken to remedy the evils found.
The average concern orders out all its trucks for the same time of loading and insists upon the driver loading his own freight from the loading dock to the truck. It will often be found that it would be much better to stagger the loading time; that is, ordering some trucks out at 6 A. M., some at 7 A. M., some at 8 A. M., etc., and to load some trucks at night so that they can start moving in the morning without any delay. It might also be found that it is not always economical to have the drivers load their own freight, as the cost per truck-hour on automobiles, for instance, is much greater than the cost per hour for helpers.
In the sale of goods, where delivered prices are required, it is very important to know just what the haulage cost is to the particular firm, whether deliveries are local or long-distance, requiring truck and rail. It is by no means infrequent to find concerns making delivered prices and taking into consideration, on less than carload shipments, only the rail rate, not taking into consideration the fact that it costs from 10 cents a hundred pounds and upwards to deliver less than carload shipments to the freight house. This cost should, of course, be figured in conjunction with the rail-haul cost.
The cost accounting system will show the effects of use of heavy-duty trucks on deliveries where the individual items are small in weight and bulk, and will prove conclusively that lighter trucks should be used for this kind of work. It will show the relative value of various types and makes of trucks and will be of great assistance in choosing future equipment.
In short, there are many arguments for the use of a cost accounting system which will overbalance the cost of keeping such a system.
It is rather difficult to outline what is really the best type of equipment. This would vary with the kind of products handled, with the length of hauls, and with the delays encountered. Most of the motor trucks now in use are built strong enough to handle the haulage of goods under ordinary conditions. The main question in the minds of most concerns, which have a considerable amount of short haul traffic, is whether to use motor trucks or horse-drawn trucks and, if it is decided to use motor trucks, whether gas trucks or electric.
In the port area of New York, during the past few years, horse-drawn trucks have not decreased, but have actually increased in number. This is due to the fact that trucking congestion in this district has become greater from year to year, and many shippers feel that they are reducing their unit cost by the use of this type of equipment; but, as a matter of fact, the increased use of the horse-drawn truck is actually increasing the congestion in areas similar to New York City.
The horse-drawn truck, up to the present time, has not had to bear as many burdens as the motor truck, in most instances paying little or no direct taxes, requiring no licensed driver, receiving preferential rates over ferries, and having lower general upkeep. The question as to whether the horse-drawn trucks should increase still further in congested districts is a very serious problem. Without doubt, at some future time, the horse-drawn trucks will be taxed for the use of city, county and state roads in the same manner as are motor trucks, because there is scarcely any reason why the motor truck should be discriminated against. The horse-drawn trucks actually do more damage to city and county roads than the motor truck. TRUCKING
It has been the habit in a great many places to simply stable horses and leave the trucks on the street or in vacant lots, saving housing costs which, of course, are large elements in the cost of operation of the motor truck. With the greater congestion and with corrective laws properly enforced, this use of the streets for stable room will be done away with in the future. If these items of cost of the horse-drawn truck are seriously changed in the next few years, the total cost of operation of such equipment will more nearly approach that of the motor truck, without the benefits of the motor truck's speed.
It is a fact that the horse-drawn truck is the means of slowing up all traffic and its added use will further slow up traffic. As street congestion becomes greater from year to year, some of our business streets are coming almost to the point of saturation and ways and means have to be devised to increase the speed of traffic. Traffic most certainly cannot be speeded up with an increasing burden of slow-moving vehicles.
For short-haul traffic, where loads are heavy and constant moves are made to different points, the use of tractors and trailers will cut down the cost of trucking considerably. With the ideal use of tractors and trailers, the hold-up for loading and unloading is on the low priced trailer only, the motive power being in practically constant use and, as most types of tractors can make fairly good running time, the cost of operation will very closely approach that of the horse-drawn equipment and will be much more reliable.
On short-haul traffic, where many deliveries are being made with frequent stops, and where time is a considerable element, it is often better to use electric trucks rather than gas or horse-drawn trucks. The electric truck is more efficient in that the power is being used only while the truck is in motion, whereas in the gas trucks, in most instances, the engine will be kept running regardless of whether or not the truck is actually moving, with the resulting low mileage per gallon of gas and almost as much wear on the moving parts of the engine as if the truck were actually making long-distance hauls. The electric truck is better than the horse-drawn, in that much better time in transit can be made at a fairly low cost of operation. Being able to cover more ground than the horse-drawn truck frequently means that one of these trucks can do the same amount of work as several horse-drawn trucks, so that the ultimate cost will be even lower than if the horse-drawn trucks were used.
The cost accounting system will give a fairly good line on the cost of operation of various types of trucks. Wherever possible, the equipment should be standard
ized, especially where most of the equipment is of practically the same tonnage. Standardization is good in many ways, several of which are: the greater efficiency of the mechanics and shopmen, the ability to interchange parts and the keeping down of the inventory in the repair shop.
In most instances, it is not a paying proposition for an individual concern to do its long-distance hauling; that is, hauling to points over 20 miles from the shipping plant. It is always best to turn this tonnage over to concerns which specialize in that kind of work; they can do it cheaper than the individual concern because of the fact that they, in most instances, are getting return loads whereas the individual concern would have a load one way only. They, of course, can figure on very heavy loads, whereas the individual concern often would have to haul only part loads; but, before it is decided to haul to any particular point via long-distance hauling concerns, all elements in the case should be considered very carefully.
To many points there are through daily cars on various carriers which will make as good delivery as the forwarding company would make or there may be boat lines which offer quick service and low rates, but it must be taken into consideration that the long-distance forwarder receives the goods at the door of the shipping plant and delivers to the consignee's door; whereas, if goods are shipped by rail, unless it is possible to forward in a ferry car to the local freight station, there is a trucking haul on the part of the consignor from his plant to the freight station and, on the part of the consignee, from the freight station to store-door. This trucking cost must be taken into consideration in addition to the rail rate.
In determing the proper rate to pay to a long-distance forwarder, the relative rate via local truck haul and rail should be figured to see that the forwarder's rate is not too high and that it is commensuate with the service rendered.
In contracting to have goods forwarded, regardless of their value, a credit rating sould be received on the forwarding concern and, in case of high priced goods, a bond should be required so that in every case proper protection is received and losses cannot very well occur.
Considerable thought has been given to store-door delivery in the past few years, but nothing definite has ever been decided about it. From the standpoint of trucking, the inauguration of store-door delivery service might actually increase the truck costs of some concerns in that, at the present time, their trucks use railroad freight to get return loads. The small shipper or consignee who has a few or no trucks at all will, of course, benefit especially by such a system.
From the community standpoint, there will probably be considerable saving of street congestion as a comparatively few trucks could handle all the inbound rail freight to store-door instead of many trucks handling the goods in small lots to many different consignees.
In the case of a large concern having no private siding, considerable saving may be made through freight being delivered direct to its store-door, instead of their having to keep a large number of trucks to handle their freight where there is not sufficient work for general delivery to keep these trucks operating full time. The question of store-door delivery is considered in this article simply to illustrate how it may result in a saving or an addition to the truck costs.
There is little that can be said with reference to the general organization required in the repair shop as it must necessarily differ with the kind of equipment handled and the number of trucks to be served. Considerable thought should be given to bin arrangements for parts so that they will be readily accessible. Care should also be used in the employment of mechanics so as to get men of experience on the type of equipment to be handled. The number of men required will of course vary with the number of trucks, most concerns using an average of one man to five trucks. One man can properly handle the servicing of five trucks if these trucks are watched constantly and serviced for minor repairs, such as tightening up the parts while the truck is at the platform for loading or unloading. In this way cars are kept in constant repair and many big repair jobs are avoided. This will not only save the reapir costs but will be an additional saving in keeping the equipment in practically constant use.
Trucking of goods between freight stations of railroads, where such transfer is in connection with the transportation of goods by common carrier, has been in existence for many years, and in the St. Louis Terminal Case 34, I. C. C. 453, the Commission held that trucking at terminals and interchange points is proper, but that such arrangements and allowances shall be just and reasonable and that they must be duly published in tariff form.
The Commission, in a more recent decision, Docket No. 14828, entitled, "In the matter of the legality of tariffs purporting to embrace or cover motor truck or wagon transfer service in connection with transportation by rail or water,” 91 I. C. C. 539, held the following:
"Tariffs covering truck or wagon transfer service, when performed as a terminal service of a common carrier subject to the provisions of the act, or in connection with transfer of freight in transit at an intermediate point by such common carriers, are not unlawful.
Tariffs covering truck service for movements commonly designated as line hauls, when operated as an extension of the line of, and as part of a through movement in connection with a carrier subject to the act, are not in accord with Section 6 and our tariff regulations, and must be corrected to comply with directions given herein.”
The Commission, in the matter of trucking service being used as an extension to reach the common carrier, distinctly expressed the opinion that motor truck or wagon transfer companies are not common carriers subject to the act, and cites the Parmalee Case, 12 I. C. C. 39. In this specific investigation the Commission required the common carrier that had joint arrangements with the trucking company, to cancel the publication that provided for the joint arrangement between the common carrier and the trucking company that performed the service beyond the terminal movement.
The Commission also made reference to the matter of tariff publication in relation to the collection and delivery of freight commonly referred to as store-door delivery, and the opinion was to the effect that nothing in the act prevented the establishment of such service or publication of charges in connection therewith by carriers subject to the act, and cited the Baltimore and Washington cases as the Commission's position with respect to store-door delivery (see Washington, D. C., store-door delivery, 27 I. C. C. 347; Merchants and Manufacturers Assn. v. Baltimore & Ohio Railroad, 30 I. C. C. 388).
Motor trucking, operated by and on behalf of common carriers has been a recent development in the motor truck history in that certain carriers are handling shorthaul package freight between points on their line by motor truck instead of using local freight trains. This is for the purpose of relieving railroad facilities so as to expedite the handling of long-haul freight, for which long-haul freight the railroads are better adapted than would be the motor truck. Under this system of trucking by common carriers, there is no change proposed with respect to rates, but is simply an alternative method of handling traffic between points already served by the common carriers. This arrangement of the common carriers has not been presented to the Interstate Commerce Commission, and upon referring to this arrangement in Docket No. 14828, the Commission expressed the following views: “As this situation was not before us on this record, we express no opinion at this time as to our jurisdiction over such service and the manner in which the rates therefor are published.”
RAILWAY EXPRESS SERVICE
RAILWAY EXPRESS SERVICE
Express service is an exclusive American idea originating in 1841, when a service was inaugurated which was not confined to the mere transportation of shipments any more than it is to-day. The express companies undertake to handle shipments of their patrons, carry their valuables, collect their money due on goods, deeds, accounts, bills and notices, pay their debts of all kinds, sell their products, serve legal papers, claim baggage at railroad stations and perform various other special services prescribed in their classification.
The railway express service has become a public necessity and ranks in importance with the mail and telegraph services.
In July, 1918, the American Railway Express Company was incorporated,
representing the unification of interests of four of the former largest express comCONSOLIDATION panies-Adams, American, Southern and Wells Fargo Express Companies.
An executive board heads this organization. There are a number of sub-divisions operating under Regional Vice-Presidents, General Managers and Superintendents, which tends to produce very close co-operation between the company and its patrons.
In May, 1921, the Southeastern Express Company was formed to operate over the Southern Railway System and has since added several of the short railroads in the Southeast in its operation.
Classification of express shipments is made up of three classes—First, Second, and Third.
First Class covers all property received for transportation, unless otherwise provided for in the classification or in commodity tariffs.
Second Class covers articles of food and drink, excepting alcoholic and intoxicating liquor.
Third Class covers commodities classified as third class, each package having CLASSIFICATION
the name of the article or articles contained therein written, stamped or printed thereon, the true or released value not exceeding $10.00, and so notated on the package by the shipper and entered on the receipt. This covers printed matter, such as almanacs, lithographs, advertisements, books, printed cards, circulars, tariffs, samples of grain, etc.
The Money Classification covers bullion, securities, etc., and provides rules and rates for transactions of a financial nature.
The present express rate structure is in accordance with the findings of the Interstate Commerce Commission after an exhaustive investigation into express rates and practices.
The United States is divided into blocks, each block representing the area between the intersecting parallels of latitude and longitude. These blocks are numbered from left to right, the first tier being in the 100 series and starting with Block No. 101. Each succeeding tier is in the next hundred series, starting with 201, 301, etc.
Between each of these blocks a rate scale is established and published in a Block Tariff for the block in which the point of shipment is located. Rates could not be established between adjacent blocks, because these blocks are approximately 50